Provincial Institutional Development Component
Agree Policy Matrix Implemented: The consultant under this component assisted CWD to meet road sector policy actions agreed between CWD and ADB at project appraisal. Implementation of this component began from 30 June 2005 and completed on 30 June 2009. The following were achieved:
Reorganization of CWD, set up of RMU/RESAC, and development of CWD website.
Supporting RMU/RESAC operations including strengthening of human resources and procurement of equipment.
Establishment of road maintenance and management system together with installation of HDM-4 and development of data base and data collection system.
Capacity building and training of basic technical staff in road design and management, computer aided design, road safety, environment assessment and management, social assessment. The total number of staff trained were: abroad (67) and in-country (421).
Provincial Access Component: Contracts awarded for 15 packages for 440.72 km length of roads, six packages completed (103.72 km) and remaining 9 packages are at various stages of construction. Most of the ongoing subprojects are behind schedule for a number of reasons: (i) security, (ii) price escalation, (iii) land acquisition and resettlement, and (iv) nonperformance of contractors on ICB and LCB contracts
SRPs for 12 LCB packages were approved in April 2010 for implementation and disclosure to affected persons. RESAC has been assigned to undertake internal monitoring and external monitor has recently been appointed to undertake external monitoring. Further revised LARPs for ICB packages 5, 7 and 9 yet to be submitted to ADB for approval.
Cross-border development component comprises physical and nonphysical components: During midterm review mission (13 to 19 Mar. 2008) it was agreed to drop this component from the loan and Government of Pakistan were to finance it from its own resources.
National Highway component: Four contracts of 230.33 km length roads were awarded from Sep. 05 to Apr. 06. The overall physical implementation progress is 70% against the original/revised completion schedule of 97%. The progress of works for the four packages is behind schedule. On NHA's request the reassignment of ICBs 2 and 4 was conditionally approved on 14 April 2009. The reassignment contract was finalized in December 2010.
A 12 months extension in loan closing was approved in March 2010 with quarterly milestones. First quarter milestones were partially achieved. Second quarter milestones were not achieved as noted by PRM-based loan review mission was conducted (19-28 July 2010) and considering (i) unachieved loan extension milestones of the second quarter, (ii) incomplete remaining activities against the assignment of civil works contracts ICBs 2 & 4 since 14 April 2009, (iii) continued deterioration of the law and order, (iv) slow pace of progress, and (v) unimproved implementation trend, concluded that completion of remaining activities within next six months is highly unlikely. In accordance with the already communicated loan extensions (25 March 2010) conditions and unaccomplished milestones of first and second quarters, ADB closed the subject loan on 31 August 2010.
Both NHA and CWD advised to quickly complete all the loan account closing activities enabling ADB to close the loan account on 31 August 2010. Any leftover liabilities after loan account closing would be the responsibility of the Government of Pakistan.
ADB on 8 Sep., 25 Oct., and 3 & 19 Nov. 2010 advised the Borrower, the NHA and CWD that: (i) CWD to refund unutilized IA, reconcile the IA, liquidate against any liabilities by 15 Dec. 2010; (ii) NHA to submit immediately documentation to the assignment of CWs contracts (ICBs 2 & 4); (iii) NHA and CWD to submit all withdrawal applications against all eligible payments for liquidation/reimbursement/direct payment on or before 15 Dec. 2010; and (iv) NHA/CWD to submit Borrower's PCR by 3